The signaling effects of fiscal announcements
Announcing a large fiscal stimulus may signal the government’s pessimism about the severity of a recession to the private sector, impairing the stabilizing effects of the policy. Using a theoretical model, we show that these signaling effects occur when the stimulus exceeds expectations and are more...
| Main Authors: | , , , |
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| Format: | Working paper |
| Language: | English |
| Published: |
University of Oxford
2024
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